European shares close higher

After a rollercoaster day - exaggerated by thin trading during the summer lull - European markets showed some substantial gains. It was an opening surge on Wall Street to a new record, following better than expected results from the likes of department store group Macy’s as well as a 3% jump in the oil price, that helped pull European shares sharply higher. The FTSE 100, in negative territory for much of the day, managed to end the day at a new 14 months high. Tony Cross, market analyst at Trustnet Direct, said:

The FTSE-100 has certainly been in for a volatile session...and once we take into account the toll stocks moving ex-dividend have exacted on the index, we’re looking at a rather upbeat performance. That said, we’re in the midst of the summer lull so thinner volumes will lend themselves to exaggerated market moves, but with more positive noises being made over oil prices stabilising, Wall Street has opened in an upbeat mood too – if these tailwinds continue, then it seems that soon enough the FTSE-100 will once again be starting with a “7”.

The final scores showed:

The FTSE 100 finished up 48.29 points or 0.7% at 6914.71, its best level since 3 June 2015

Germany’s Dax added 0.86% to 10,742.84

France’s Cac closed up 1.17% at 4503.95

Italy’s FTSE MIB rose 1.06% to 16,969.69

Spain’s Ibex ended up 0.7% at 8719.5

In Greece, the Athens market added 0.89% to 572.33

On Wall Street, the Dow Jones Industrial Average is currently up 129 points or 0.7%.

Oil continues to rise, with Brent crude climbing 5% at one point. It is now up 4.5% at $46.05 a barrel.

As for the pound, it is now down 0.36% at $1.2961 and 0.21% lower at €1.1614.

On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.

The pound continues to weaken. It is now at around €1.1600 against the euro, down 0.33% and at its lowest level since 6 July. In the wake of the Brexit vote it hit a post referendum low of €1.1575 on that date, according to Caxton FX analyst Alexandra Russell-Olive.

Wall Street higher in early trading

US markets are in buoyant mood after the oil price steadies, US weekly jobs claims fell again and a number of companies including department store group Macy’s and US listed Chinese internet group Alibaba issued positive updates.

The Dow Jones Industrial Average is currently up 49 points or 0.26%, while the S&P 500 and Nasdaq are also moving higher.

The vacancy at the independent OBR, which scrutinises the government’s finances, comes because Sir Stephen Nickell is due to step down in December. Sir Charles said:

I am delighted that the Chancellor has nominated me for appointment to the OBR’s Budget Responsibility Committee. Sir Stephen Nickell and the rest of the BRC have done excellent work in establishing the credibility and reputation of the OBR, and I will be honoured to take up the post should the Treasury Committee wish me to do so.

Back with Brexit, and another suggestion that the UK economy is suffering after the vote to leave the European Union.

A Reuters poll of nearly 60 economists indicated they expected the economy to contract by 0.1% in the third and fourth quarters. Ahead of the vote, they had expected similar growth to the 0.6% recorded in the second quarter.

Most of those surveyed also thought the Bank of England would reduce interest rates again in November to just 0.1% after this month’s reduction in borrowing costs.

Two thirds of those who answered a question on fiscal measures expected the government to come up with some sort of fiscal stimulus in the Autumn statement.

US jobless claims fall as labor market stays healthy

If job creation was an Olympic sport, then the USA would be taking home yet another medal.

The weekly job figures, just released, show that the number of Americans filing new claims for unemployment benefit fell by 1,000 last week, to 266,000. That suggests that the US labour market is in robust health, with employers still creating new jobs.

This is the 75th week running in which the initial claims figure has been below 300,000, the traditional threshold for a strong labour market.